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Knowlton Company Applies Overhead to Completed Jobs on the Basis

Question 102

Multiple Choice

Knowlton Company applies overhead to completed jobs on the basis of 70% of direct labour cost.If Job 501 shows $21,000 of manufacturing overhead applied,what was the direct labour cost on the job?


A) $14,700.
B) $21,000.
C) $30,000.
D) $27,300.

Correct Answer:

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